Table of Contents
Overview
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- What you need to know
- Products covered in this report
- Still wines
- Sparkling wines
- Fortified wines
- Excluded from the Report
Executive Summary
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- The market
- Strong year for wine sales in 2017
- Slowdown in growth in 2018
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- Figure 1: Forecast of total UK value sales of wine, 2013-23
- Off-trade continues to outperform on-trade
- Better harvests expected in 2018 after weather-hit 2017
- Companies and brands
- Most top brands in still wine see sales growth
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- Figure 2: UK retail value sales of the top 10 still wine brands, 2017/18*
- Freixenet benefits from move into prosecco
- Buckfast drives growth in fortified wines
- More formats targeting out-of-home occasions
- Smaller bottles target mid-week drinking
- New lighter, drier rosé and fruit-flavoured wines added
- The consumer
- Two thirds of adults buy wine
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- Figure 3: Purchase of wines by type, August 2018
- In-store purchases dwarf on-trade wine buying
- Grape type biggest factor influencing choice
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- Figure 4: Most important factors influencing choice of still wine, August 2018
- Special offers/promotions have a big influence
- Room to encourage more experimentation
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- Figure 5: Behaviours related to buying wine, August 2018
- A third of wine buyers interested in ‘natural’ wines
- Interest in more fruit-infused and sparkling wines
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- Figure 6: Interest in buying different wine products, August 2018
- On balance more people are drinking less wine than more
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- Figure 7: Attitudes towards wine, August 2018
- What we think
Issues and Insights
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- Room for samplings and suggestions to encourage more wine buying
- The facts
- The implications
- Packaging development can help add value to wine market
- The facts
- The implications
- Alcohol moderation offers opportunity for wines with less alcohol
- The facts
- The implications
The Market – What You Need to Know
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- Strong year for wine sales in 2017
- Slowdown in growth in 2018
- Still wine sales grow strongly
- Slowdown in growth of sparkling wines
- Buckfast boosts fortified wines
- Off-trade continues to outperform on-trade
- Freeze on wine duty in November 2017 Budget
- Weakening of Pound ups wine prices
- Better harvests expected in 2018 after weather-hit 2017
Market Size and Forecast
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- Strong year for wine in 2017
- Higher prices boost value sales
- Still wine a big driver of growth
- Slowdown in growth in 2018
- Prices still increasing
- Brexit uncertainty continues
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- Figure 8: Total value and volume sales of wine, at current and constant prices, 2013-23
- Figure 9: Forecast of total UK value sales of wine, 2013-23
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- Figure 10: Forecast of total UK volume sales of wine, 2013-23
- Forecast methodology
Market Segmentation
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- Strong growth seen in still wine sales
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- Figure 11: Total value and volume sales of still wines, at current and constant prices, 2013-23
- Figure 12: Forecast of UK value sales of still wines, 2013-23
- Slowdown in growth of sparkling wines
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- Figure 13: Total value and volume sales of sparkling wines (including Champagne), at current and constant prices, 2013-23
- Figure 14: Forecast of UK value sales of sparkling wine (including Champagne), 2012-23
- Buckfast reverses decline in fortified wines
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- Figure 15: Total value and volume sales of fortified wines, at current and constant prices, 2013-23
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- Figure 16: Forecast of UK value sales of fortified wines, 2012-23
Channels to Market
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- Off-trade continues to outperform on-trade
- Rising costs push up on-trade wine prices
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- Figure 17: UK value and volume sales of wine in the on- and off-trade, by type, 2016-18
Market Drivers
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- Freeze on wine duty in November 2017 Budget
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- Figure 18: UK excise duty rates for wines, 2008-17
- Weakening of Pound against leading currencies ups wine prices
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- Figure 19: Average Annual exchange rates for Sterling, 2013-18
- Weather impacts on wine harvests in Europe in 2017
- Moderation in alcohol puts pressure also on wine
- Cost and health are key reasons for drinking less wine
- Rising costs in the on-trade
- Population growth will help wine sales
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- Figure 20: Trends in the age structure of the UK population, 2013-23
Companies and Brands – What You Need to Know
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- Most top brands in still wine see sales growth
- Freixenet benefits from move into prosecco
- Buckfast drives growth in fortified wines
- More formats targeting out-of-home occasions
- Smaller bottles target mid-week drinking
- Lighter and premium variants look to boost rosé wines
- Low- and no-alcohol offerings tap interest in alcohol moderation
- Fruit-flavoured wines tap interest in different flavours
- Wine brands looking to stand-out packaging
- Retailers dominate wine advertising
Market Share
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- Most top brands in still wine see sales growth
- Mid-market brands lose out to premium rivals
- TWE taps into demand for quality branded offerings
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- Figure 21: UK retail value and volume sales of the leading still wine brands, 2016/17-2017/18
- Freixenet benefits from move into prosecco
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- Figure 22: UK retail value and volume sales of the leading sparkling wine brands, 2016/17-2017/18
- Own-label makes gains in Champagne
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- Figure 23: UK retail value and volume sales of the leading Champagne brands, 2016/17-2017/18
- Buckfast drives growth in fortified wines
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- Figure 24: UK retail value and volume sales of the leading fortified wine brands, 2016/17-2017/18
Launch Activity and Innovation
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- More formats targeting out-of-home occasions
- New pouches and bag-in-box wines
- More single-serve cans launched
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- Figure 25: Example of Most Wanted wine in cans, 2018
- Smaller bottles target midweek drinking
- Grocers explore smaller bottles
- Accolade and Concha y Toro launch 50cl bottles
- Lighter and premium variants look to boost rosé wines
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- Figure 26: Examples of pale rosé wine, 2018
- More celebrity wines launched
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- Figure 27: Examples of celebrity wine ranges, 2018
- Low- and no-alcohol offerings tap interest in alcohol moderation
- Black Tower and McGuigan go as low as 0.5% ABV
- Aldi launches ZeroPointZero wine alternatives
- Low-calorie variants remain a rarity in wine market
- Fruit-flavoured wines tap interest in different flavours
- Kingsland Drinks pitches fruit fusion sparkling as a premium drink
- Château Jacked goes for a younger crowd with ginger and lychee
- More spritz activity from leading brands
- Wine brands look to stand-out packaging
- 19 Crimes uses AR to bring labels to life
- New colour-changing label for Harveys Bristol Cream
- Pernod Ricard links with the artist community
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- Figure 28: Examples of wines with standout packaging, 2018
- Organic wines growing from low base
- More vegan wines being launched
Advertising and Marketing Activity
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- Increase in 2017 wine advertising
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- Figure 29: Total above-the line, online display and direct mail advertising expenditure on wine, 2014-18
- Retailers dominate wine advertising
- Lidl looks to prove the quality of its wine
- Most retailers push wine price promotions
- Fragmented spend by brands
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- Figure 30: Total above-the line, online display and direct mail advertising expenditure on wine, by advertiser, 2014-18
- Yellow Tail puts the focus on taste
- Kumala wine looks to ‘Keep it Kolourful’
- Echo Falls official wine of Love Island
- Casillero del Diablo renews Sky TV sponsorship
- TV adverts for Blossom Hill and Wolf Blass
- Hardys renew partnership with England Cricket
- I Heart Wines launches digital and poster campaign
- Eisberg and Campo Viejo focus on experience
- JP Chenet campaign for single serve bottles
- Nielsen Ad Intel coverage
The Consumer – What You Need to Know
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- Two thirds of adults buy wine
- Still white and red remain most popular types
- In-store purchases dwarf on-trade wine buying
- Grape type biggest factor influencing choice
- Alcohol content is a bigger factor for younger consumers
- Special offers/promotions have a big influence
- Room to encourage more experimentation
- A third of wine buyers interested in ‘natural’ wines
- Interest in more fruit-infused and new sparkling wines
- On balance more people are drinking less wine
Purchase of Wines
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- Two thirds of adults buy wine
- Wine buying falls among over-65s and rises with income
- Sparkling wine sees a younger skew
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- Figure 31: Profile of still and sparkling wine buyers, by age, August 2018
- Still white and red remain most popular types
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- Figure 32: Purchase of wines by type, August 2018
- Prosecco cements third place
- Champagne shows a stronger young bias
- Still rosé and fruit-flavoured wines are more popular with women and younger drinkers
Locations for Buying Wine
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- In-store purchases dwarf on-trade wine buying
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- Figure 33: Channels used for buying wines, August 2018
- Big supermarkets used by eight in ten buyers of wine
- Aldi and Lidl over-trade in wine
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- Figure 34: Where wine has been bought in the last 6 months, August 2018
- Specialist wine stores draw in more shoppers online than off
- C-stores appeal most to under-45s
- Three in ten wine buyers buy from pubs/bars
Factors Influencing Choice of Still Wine
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- Grape type biggest factor influencing choice
- Grape type has most sway among over-55s
- Retailers can focus on grape over country
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- Figure 35: Most important factors influencing choice of still wine, August 2018
- Country of production lags some way behind grape type in wine choice
- Focus on country of production need not be about familiar origin
- Alcohol content is a bigger factor for younger consumers
- Brand name and look of bottle can help increase appeal
Behaviours Related to Buying Wine
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- Special offers/promotions have a big influence
- Savvy shopping is part of wine buying for most
- Wine events offer some scope to boost volume sales
- Most buyers report trading up in wine
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- Figure 36: Behaviours related to buying wine, August 2018
- Room to encourage more experimentation in wine buying
- Sampling offers a way to expand wine repertoires
- Wine buyers are open to more suggestions
- Supermarkets should benefit from making wine choice easier
- Half of buyers will ask staff to help with wine choice
Interest in Buying Products
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- A third of wine buyers interested in ‘natural’ wines
- All-natural claims are rare in wine
- Promoting natural credentials should appeal
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- Figure 37: Interest in buying different wine products, August 2018
- Emphasising ‘craft’ credentials can also win favour
- Spotlighting small volume should benefit retailers/on-trade venues
- Interest in more fruit-infused wines
- New types of sparkling wines appeal widely
- Interest in more choice in different packaging formats
- Single serve wines interest 35-44s and c-store shoppers the most
- Gift packs appeal to a fifth of buyers
Wine Drinking Behaviour
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- On balance more people are drinking less wine
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- Figure 38: Change in amount of wine drunk compared to a year ago, August 2018
- Saving money and health are main reasons for drinking less wine
- Risk of squeezed buyers taking wine off the shopping list
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- Figure 39: Reasons for drinking less wine compared with a year ago, August 2018
- Low-calorie wines can steal a march with those moderating wine to manage weight
Attitudes towards Wine
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- Taste is key for increasing the appeal of low-alcohol wine
- Strong interest in below 10% ABV wines
- Lower-alcohol wines chime in particular with Millennials
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- Figure 40: Attitudes towards wine, August 2018
- Wine spritzers also seen as good for alcohol moderation
- Women and youngsters are most positive about spritzers
- Interest in low-calorie wines overlaps with positivity about spritzers
- Smaller bottles can help encourage more wine drinking
- Smaller sized bottles have most sway among 18-34s
Appendix – Data Sources, Abbreviations and Supporting Information
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- Abbreviations
- Consumer research methodology
Appendix – Market Size and Forecast
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- Forecast methodology
Appendix – Market Segmentation
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- Figure 41: Best- and worst-case forecast of total UK retail value sales of wine, 2018-23
- Figure 42: Best- and worst-case forecast of total UK retail volume sales of wine, 2018-23
- Figure 43: Forecast of UK volume sales of still wines, 2013-23
- Figure 44: Best- and worst-case forecast of UK retail value sales of still wine, 2018-23
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- Figure 45: Best- and worst-case forecast of UK retail volume sales of still wine, 2018-23
- Figure 46: Forecast of UK volume sales of sparkling wines (including Champagne), 2013-23
- Figure 47: Best- and worst-case forecast of UK retail value sales of sparkling wine (including Champagne), 2018-23
- Figure 48: Best- and worst-case forecast of UK retail volume sales of sparkling wine (including Champagne), 2018-23
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- Figure 49: Forecast of UK volume sales of fortified wine, 2013-23
- Figure 50: Best- and worst-case forecast of UK retail value sales of fortified wine, 2018-23
- Figure 51: Best- and worst-case forecast of UK retail volume sales of fortified wine, 2018-23
- Figure 52: Total value and volume sales of fortified wines through the off-trade, by type, at current prices, 2016-18
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- Figure 53: Total value and volume sales of still wine through the off-trade, by types, at current prices, 2016-18
- Figure 54: Total value and volume sales of sparkling wine (excluding Champagne) through the off-trade, by types, at current prices, 2016-18
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Appendix – Market Share
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- Figure 55: UK retail value and volume sales of the leading still wine manufacturers, 2016/17-2017/18
- Figure 56: UK retail value and volume sales of the leading sparkling wine manufacturers, 2016/17-2017/18
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- Figure 57: UK retail value and volume sales of the leading Champagne manufacturers, 2016/17-2017/18
- Figure 58: UK retail value and volume sales of the leading fortified wine manufacturers, 2016/17-2017/18
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Appendix – Launch Activity and Innovation
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- Figure 59: New product launches in the UK wine market*, by claim (sorted by 2017), 2014-18
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